Sempra's $10 Billion Stake Sale and LNG Expansion

On September 23, 2025, Sempra Energy announced a significant transaction involving the sale of a 45% equity interest in its infrastructure unit, Sempra Infrastructure Partners, to a consortium led by KKR & Co. and the Canada Pension Plan Investment Board (CPP Investments) for $10 billion. This deal values Sempra Infrastructure at approximately $22.2 billion in equity and $31.7 billion in enterprise value. The transaction is expected to close between the second and third quarters of 2026, pending regulatory approvals. Following the sale, the KKR-led consortium will hold a 65% stake in Sempra Infrastructure, while Sempra will retain 25% and the Abu Dhabi Investment Authority will maintain its 10% interest.

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Sempra's decision to sell a significant stake in its infrastructure arm is part of a broader strategy to focus on regulated utilities, which are projected to account for about 95% of the company's future earnings. The sale is expected to strengthen Sempra's credit profile and eliminate the need for new equity issuances under its $56 billion capital plan for 2025–2029. Sempra's shares rose by over 5% following the announcement, reflecting investor confidence in the company's strategic direction.

Sempra Strikes $17 Billion Double Play With KKR, CPPIB, and BlackstoneKKR and CPP Investments to acquire 45% stake in Sempra Infrastructure in $10bn dealSempra shares surge 5% after $10B stake sale in infrastructure unitSempra sells $10 billion stake in infrastructure unit, greenlights Port Arthur expansionReuters

In conjunction with the stake sale, Sempra Infrastructure Partners has approved a $14 billion expansion of its Port Arthur LNG project in Texas. This expansion will add two new liquefaction trains and one LNG storage tank, increasing capacity by 13 million tonnes per year. The project is backed by a $7 billion equity investment from Blackstone Credit & Insurance, alongside KKR, Apollo-managed funds, and Goldman Sachs Alternatives. Commercial operations for the expansion are scheduled to begin in 2030 and 2031.

Sempra shares surge 5% after $10B stake sale in infrastructure unitReutersKKR and CPP to buy $10bn stake in Sempra Infrastructure as Blackstone backs $7bn LNG projectKKR and CPP Investments to acquire 45% stake in Sempra Infrastructure in $10bn dealSempra sells $10 billion stake in infrastructure unit, greenlights Port Arthur expansionCityLab

The transactions underscore a growing trend of private equity firms investing heavily in energy infrastructure, particularly in liquefied natural gas (LNG) assets. The rising demand for energy, driven by the expansion of AI data centers and increasing domestic consumption, has attracted significant capital into the sector. Raj Agrawal, Global Head of Real Assets at KKR, expressed enthusiasm for the partnership, emphasizing the potential to meet the growing global demand for energy.

Reuters

While the deal has been positively received by many investors, some critics argue that the continued investment in fossil fuels, such as natural gas, may not align with long-term sustainability goals. Concerns have been raised about the environmental impact of LNG projects and the need for a more rapid transition to renewable energy sources.

The Globe and Mail (Toronto)

Sempra's chairman and CEO, Jeffrey W. Martin, stated, “The transactions announced today further Sempra’s corporate strategy by advancing the company’s capital recycling programme and transition to a leading US utility growth business.” Meanwhile, Max Biagosch, CPPIB’s global head of real assets, highlighted the importance of natural gas in the global energy transition, asserting that LNG infrastructure is central to meeting rising global demand.

Sempra shares surge 5% after $10B stake sale in infrastructure unit

As the deal progresses towards closure in 2026, Sempra will continue to focus on its capital recycling strategy and the expansion of its LNG projects, positioning itself as a key player in the evolving energy landscape.

Sempra shares surge 5% after $10B stake sale in infrastructure unit